Mr. Jim Gowans reports
DOMINION DIAMOND CONSOLIDATES OWNERSHIP INTEREST IN THE EKATI DIAMOND MINE
Dominion Diamond Corp. has signed an agreement with Archon Minerals
Ltd. to convert Archon's participating joint venture
interest in the Buffer zone joint venture at the Ekati
diamond mine in Canada's Northwest Territories to a royalty equal to
2.3 per cent of all future gross revenue from diamonds produced from the Buffer
zone.
As a result of this transaction, the company's ownership interest in the
Buffer zone has increased to 100.0 per cent. The company maintains an ownership
interest of 88.9 per cent in the Core zone joint venture at the Ekati diamond
mine.
Commenting on the transaction, Jim Gowans, chairman of the board of
directors of Dominion, said: "We are delighted to have reached this
mutually beneficial agreement with Archon. For both parties, the
transaction provides ownership and funding certainty for the large-scale
Jay project, which is currently in the final stages of permitting. It
also provides significantly more exposure for Dominion's shareholders to
further discoveries on this highly prospective land package."
On July 6, 2016, Dominion issued the results of a feasibility study on
the Jay project, indicating positive project economics with a posttax
net present value of $398-million and an internal rate of return of
15.6 per cent. Commercial mining activities at the Lynx kimberlite pipe in the
Buffer zone commenced on April 1, 2017. The Lynx pipe is forecast to
represent approximately 5 per cent of tonnes processed and carats recovered at
the Ekati diamond mine for the fiscal year ending Jan. 31, 2018.
The Buffer zone contains 106 mining leases covering 89,184 hectares, and
is contiguous with the Core zone joint venture at the Ekati diamond
mine. Of the 150 kimberlite pipes discovered to date at the Ekati
diamond mine, 38 are in the Buffer zone. The company plans to spend
approximately $11-million on exploration in the Lac de Gras region
for the fiscal year ending Jan. 31, 2018.
About Dominion Diamond Corp.
Dominion Diamond is a Canadian mining company and one of
the world's largest producers and suppliers of premium rough diamond
assortments to the global market. The company operates the Ekati diamond
mine, in which it owns a controlling interest, and owns 40 per cent of
the Diavik diamond mine, both of which are located in the low-political-risk environment of the Northwest Territories in Canada. It also has
world-class sorting and selling operations in Canada, Belgium and India.
© 2024 Canjex Publishing Ltd. All rights reserved.